Investors should watch for a potential pullback in the U.S. dollar, which rose despite a worsening unemployment rate in the U.S. jobs report

Investors should watch for a potential pullback in the U.S. dollar, which rose despite a worsening unemployment rate in the U.S. jobs report

09.12.2024

Last weekend, the U.S. dollar fell against the yen following the release of the U.S. November employment report on the 6th. While nonfarm payrolls came in higher than the market forecast of 200,000 at 227,000, the unemployment rate rose by 0.1 percentage points from 4.1% to 4.2%.The USD/JPY pair fell from 150.693 to 149.372, dropping to the -3σ level of the hourly Bollinger Bands. On the daily chart, the pair is facing resistance at the 200-day SMA.

European currencies saw the euro fall slightly against the U.S. dollar, despite the fact that Germany’s October industrial production, released on the 6th, improved year-over-year from a 4.6% decline in the previous month to a 4.5% decline. The euro/dollar exchange rate fell from 1.0629 to 1.0543. It broke below the 20-period moving average (MA) on the hourly chart and dropped to just below the 75-period MA.On the daily chart, the 20-day moving average is acting as a resistance level, causing prices to pull back.

Today’s schedule includes Japan’s second preliminary estimate of real GDP and balance of payments at 8:50, China’s Producer Price Index at 10:30, Indonesia’s Consumer Confidence Index at 12:00, Sweden’s Expected Price Trends at 14:30, Norway’s Producer Price Index at 16:00, Taiwan’s trade balance at 17:00,at 9:00 PM, Mexico’s Consumer Price Index; at 10:30 PM, remarks by Ramsden, Deputy Governor of the Bank of England; at midnight, U.S. Wholesale Inventories; and at 1:30 AM, a U.S. 6-month Treasury bill auction. We should watch for a potential pullback in the U.S. dollar, which rose despite the worsening unemployment rate in the U.S. jobs report.